Future changes to the EU-wide stress test: EBF response

Future changes to the EU-wide stress test: EBF response 

BRUSSELS, 7 July 2020 – The EBF fully supports the European Banking Authority’s (EBA) initiative to review the EU-wide stress testing framework. In its response to the EBA’s discussion paper on future changes to EU-wide stress test, the EBF highlighted the following key concerns:

• The EBF prefers to further develop and improve the current framework over the EBA’s proposal to split the stress test into a supervisory leg and a bank leg
• The results of the stress test should be published as a single figure
• The EBF supports efforts to make the dialogue between banks and supervisors more relevant and to ensure that it takes place earlier in the process
• Internal stress testing embedded in the internal capital adequacy assessment process (ICAAP) should be given a stronger role
• The EBF considers additional transparency related to the models used by supervisors as necessary for the conduct of the exercise and to improve the credibility of the exercise
• The EBF view is that the results of the Pillar 2 Guidance and the results of the bank leg should not be disclosed

EBF Adviser:

Lukas Bornemann, Policy Adviser

l.bornemann@ebf.eu, +32 2 313 32 73

About the EBF:

The European Banking Federation is the voice of the European banking sector, bringing together national banking associations from 45 countries. The EBF is committed to a thriving European economy that is underpinned by a stable, secure and inclusive financial ecosystem, and to a flourishing society where financing is available to fund the dreams of citizens, businesses and innovators everywhere. Website: www.ebf.eu Twitter: @EBFeu